Objectives:

Upon completion of this course, participants will be able to:

• Analyze the fundamental technologies (e.g., Blockchain, DLT) and categorize various **Crypto-Assets** (e.g., utility tokens, stablecoins, NFTs).
• Identify the specific **consumer protection and financial stability risks** posed by crypto-assets (volatility, scams, lack of recourse, custodial risk).
• Evaluate and apply global regulatory frameworks (e.g., MiCA, FATF, IOSCO) for the classification and supervision of crypto-asset service providers (**CASPs**).
• Design robust **investor protection measures** for vulnerable populations, including disclosure mandates, suitability rules, and marketing restrictions.
• Understand the AML/CFT requirements (e.g., **FATF Travel Rule**) and the risks associated with decentralized finance (**DeFi**) and unhosted wallets.
• Develop strategies for regulatory coordination and enforcement against cross-border crypto-related fraud and illegal offerings.
• Assess the regulatory approach to **Stablecoins** and their potential impact on monetary policy and financial stability.
• Analyze the challenges of ensuring consumer recourse and custody protection in a distributed and largely unregulated environment.

• Regulators and Supervisors from Securities Market Authorities and Central Banks
• Financial Market Integrity and AML/CFT Specialists
• Consumer Protection and Market Conduct Regulators
• Investment Advisors and Wealth Managers (especially those advising on digital assets)
• Legal Counsel and Compliance Officers at Crypto-Asset Service Providers (CASPs)
• Policy Makers focused on Digital Finance and Financial Stability
• Cyber Security and FinTech Risk Management Professionals

• Case Studies analyzing major crypto-asset market failures (e.g., exchange collapse) and the consumer impact.
• Group Activities on drafting a simplified risk warning and disclosure statement for a speculative crypto-asset.
• Discussions on the jurisdictional challenges of regulating decentralized autonomous organizations (DAOs).
• Individual Exercises on applying the FATF Travel Rule to a simulated transaction flow.
• Policy workshop simulation on setting retail investment limits for high-volatility crypto-assets.
• Expert Q&A on the technological and market dynamics of the crypto-asset space.

Unit 1: The Crypto-Asset Landscape and Risk Profile

• Introduction to Distributed Ledger Technology (DLT) and the mechanics of crypto-assets.
• Regulatory classification: Security, commodity, payment token, or something new?
• The unique risk profile: Extreme volatility, lack of underlying value, market opaqueness.
• Identifying the specific risks for **vulnerable and retail investors** (complexity, lack of recourse).

• Risks of market manipulation, pump-and-dump schemes, and insider trading.
• Applying **FATF AML/CFT requirements** to Virtual Asset Service Providers (VASPs/CASPs).
• The challenge of regulating Decentralized Finance (**DeFi**) and unhosted wallets.
• Regulatory requirements for record-keeping and transaction tracing (**Travel Rule**).

Unit 2: Designing Investor Protection Frameworks

• Mandating clear, simple, and risk-prominent **disclosure documents** for crypto-assets.
• Establishing **suitability and appropriateness** rules for retail investment in high-risk assets.
• Regulatory restrictions on marketing, advertising, and the use of social media influencers.
• Implementing limits on investor exposure based on financial knowledge or net worth.

• Requirements for securing and segregating client assets held by CASPs (custodial risk).
• Defining liability for lost assets due to exchange hacks, operational failures, or private key loss.
• Establishing a clear and accessible **consumer recourse** and dispute resolution mechanism.
• The regulatory approach to addressing scams, rug pulls, and fraudulent offerings.

Unit 3: Regulating Specific Assets and Activities

• Regulatory models for **Stablecoins** (e.g., asset-backed, algorithmic) and their oversight.
• Assessing the risks of large-scale stablecoin adoption to monetary policy and systemic stability.
• Regulating **Non-Fungible Tokens (NFTs)** from a consumer protection and financial crime perspective.
• The regulatory approach to Initial Coin Offerings (ICOs) and token distribution.

Unit 4: Supervision, Enforcement, and Global Coordination

• Developing a robust licensing and authorization regime for Crypto-Asset Service Providers.
• Monitoring crypto-asset markets for signs of manipulation and high-risk activity.
• The challenge of cross-border enforcement and the need for international regulatory coordination.
• Case studies of major regulatory enforcement actions against crypto-asset platforms.